Net sales of American fashion retailer Express at $1,864 mn in FY22

Express Inc's gross margin was 28.4 per cent of net sales in FY22, while the selling, general, and administrative expenses were $596.7 million, 32 per cent of net sales, the company said in a press release.

The company’s operating loss in FY22 was $67.5 million compared to operating income of $0.8 million in FY21. However, the net income was $293.8 million, or $4.25 per diluted share, compared to a net loss of $14.4 million, or $0.22 per diluted share, in FY21. On an adjusted basis, net loss was $82.4 million, or $1.21 per diluted share in FY22.

EBITDA was $402.7 million in FY22, compared to EBITDA of $64.7 million in FY21. Adjusted EBITDA was $6.8 million in FY22.

For the fourth quarter (Q4) of FY22, the consolidated net sales decreased 14 per cent to $514.3 million from $594.9 million in Q4 FY21, with consolidated comparable sales down 13 per cent. Comparable retail sales, which includes both Express stores and e-commerce, were down 15 per cent compared to the fourth quarter of FY21. Retail stores comparable sales decreased 11 per cent year-on-year (YoY), while e-commerce declined 19 per cent YoY. Comparable outlet sales decreased 7 per cent compared to the fourth quarter of FY21.

The gross margin was 23.9 per cent of net sales in Q4 FY22, compared to 29.2 per cent in last year's fourth quarter, a decrease of approximately 530 basis points. Selling, general, and administrative expenses were $162.2 million, 31.5 per cent of net sales, versus $163.2 million, 27.4 per cent of net sales, in last year's fourth quarter.

Operating loss in Q4 FY22 was $39.3 million compared to operating income of $10.3 million in the fourth quarter of FY21. Net income was $333.2 million, or $4.82 per diluted share, compared to net income of $7.6 million, $0.11 per diluted share, in Q4 FY21. EBITDA was $385.8 million, compared to $25.8 million in Q4 FY21.

For Q1 FY23, the company expects a significant decline in comparable sales expected in the low-double digits compared to the same period in FY22. Additionally, the gross margin rate is expected to decrease by approximately 850 basis points, resulting in a higher cost of goods sold. The company is also projecting a loss in diluted earnings per share of between $0.70 and $0.80. However, the company plans to adjust its inventory levels to move closer to sales trends throughout the year.

Looking ahead to FY23, Express, Inc projects low-single-digit growth in comparable sales. Despite this improvement, the company still expects to report a loss in diluted earnings per share of between $0.85 and $1.05 for FY23, compared to the previous year, the release added.

"We delivered full year 2022 diluted earnings per share of $4.25 which reflects the after-tax impact of the gain of $409 million recognised upon completing the transaction with WHP Global. This transformative strategic partnership begins a bold, new chapter for our company," said Tim Baxter, chief executive officer. “We are now beginning to reposition our company strategically. In addition to our focus on achieving profitable growth in our core Express business, we will also focus on optimising our omnichannel platform across a portfolio of brands and accelerating our growth and profitability in partnership with WHP Global. We will accomplish this by operating with consistent, rigorous, sustainable financial discipline, and we are fully committed to creating long-term shareholder value."

Fibre2Fashion News Desk (DP)